We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Mexico Distribution Center for The Moose’s Cabin Essay Sample


Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

Opening a distribution center in Mexico will provide The Moose’s Cabin with opportunities to expand our client base. The current location in the Northeastern United States experiences extreme winter weather conditions, causing slower winter order fulfillment. “Manufacturers who want to take advantage of lower fixed rates and labor costs see the benefits of moving all or portions of their assembly operations to Mexico.” (Group Sion, n.d.) Strong trade routes due to the geography and topography of the country offer both maritime and ground transportation efficiencies. Adding a location that has a warmer climate will allow greater flexibility during those months. “Mexico has a tropical climate with distinct rainy and dry seasons. Temperatures in the coastal regions range from 21° C to 27° C.” (Library of Congress, 2008) The physical local for our new expansion should stay on in the Central or Western larger cities.

The hurricane season on the Gulf of Mexico coast may prohibit benefits that the westerly and central places will offer. The benefits and opportunities to expand The Moose’s Cabin sending twenty-five hardworking employees and myself will reap great rewards. The company’s performance trends during the last few fiscal years reveal that now is the time economically to begin expanding our products to other regions of the world. Home décor products for median income households offered online and in retail, outlets do not have close proximity to the proposed location in Mexico. Economics

The economic structure in Mexico opened an environment for businesses to open new satellite locations to take advantage of the land and labor costs. The United States entered into the North American Free Trade Agreement with Mexico. “The favorable terms of trade makes the Mexico import and export a profitable venture both for the domestic and international investor.” (MapXL.com, 2011) Exposure to a new demographic offers another positive factor for The Moose’s Cabin doing business from a Mexican location. M

any other businesses in the United States have chosen to move into other countries to stay viable in

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
the challenging economic conditions. To continue our level of success for this market share and potentially expand to other markets opening a new facility in Mexico is a strong business decision. “In 2006 the leading markets for Mexican products in terms of percentage of total exports were the United States, 84.7 percent; Canada, 2.1 percent; Germany, 1.3 percent; and Spain, 1.2 percent.” (Library of Congress, 2008) The Group Sion’s research confirms what business owners and economists believe to be true; consumers want the best products at the lowest possible prices. To offer The Moose’s Cabin customers these savings an expansion site will assist in offering lower overall costs.

The political environment in Mexico over the last few years has evolved shows signs of changing. The Mexican government is composed of thirty-one states and a Federal District, who participate in a multi-party democracy. The parliament organization has a senate that subdivides into an upper house and a lower house. The upper house term limit of six years is longer than the lower house limit of three years. Once a senate member reaches the end of their term, they cannot seek immediate re-election and must wait until the next election period. With the senate seats constantly churning, the country has shown a great ability to adapt to the introduction of other countries bringing business. The Library of Congress reports that the relationship between Mexico and the United States remains at the top of the Mexican foreign policy agenda. Business

An article titled “Doing the right things in Mexico” provides great tips for conducting business. The journal details that strong business fundamentals can span across many nations. Since The Moose’s Cabin has created excellent practices here in the United States transitioning business to Mexico will not be difficult. The environment in Mexico promotes women in leadership roles. “Knowledge is respected in Mexico so there have been no problems with their being accepted by male employees.” (Gowan, Ibarreche & Lackey, 1996) Many of our competitors chose to open expansion locations in countries similar to Mexican cultures to maximize the opportunities for growth. “These reforms, which culminated in the ratification of the North American Free Trade Agreement (NAFTA) in 1994, attracted an influx of US $148 billion in foreign direct investment (FDI) during the next decade.” (Library of Congress, 2008) The labor costs of doing business in Mexico according to Group Sion have a savings of seven dollars per hour fully burdened versus the average costs in the US. “The workforce is just tremendously open to ideas creative at all levels.” (Gowan, Ibarreche & Lackey, 1996)


APA Style
Group Sion. (n.d.). Doing business in Mexico. Retrieved October 31, 2011 from http://www.gruposion.com.mx/Doing/Doing.htm Gowan, M., Ibarreche, S., & Lackey, C. (1996). Doing the right things in Mexico. The Academy of Management Executive, 10(1), 74-81. Retrieved October 25, from http://www.jstor.org/stable/4165307 Library of Congress, Federal Research Division. (2008). Country profile: Mexico. Retrieved October 24, 2011 from http://lcweb2.loc.gov/frd/cs/profiles/Mexico.pdf MapXL.com. (2011). Mexico information retrieved October 31, 2011 from http://www.mexicomapxl.com/

We can write a custom essay on

Mexico Distribution Center for The Moose’s Cabin ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

To Investigate the Distribution of Plantago Major...

Introduction: Plantago major is a species of Plantago which belongs to the family Plantaginaceae, and is widely found in most parts of Europe and Asia. Also called "common plantain", the plant is a common weed which grows in compacted soils along sidewalks and grasslands. Medicinally, it is astringent, expectorant, antimicrobial, antiviral, and diuretic. Hypothesis: It is hypothesized that Plantago major plants tend to grow abundantly in the soil that is closest to the footpath compared to the soil which is further away from the footpath. The independent variable in this investigation was different parts of grassland along a sidewalk in which the plants were counted while the dependent variable was the number of plants found in each of the parts. Controlled variables were the area and number of squares which were drawn on the grassland in which plants were counted. Materials - Measurement tape - Pins Procedure 1. The grassland...

How Sunlight Affects The Distribution Of A...

Research Question: How does sunlight affect the distribution of a specific type of plant specie in an area which has approximately the same temperature, soil pH, nutrients, soil salinity and water content? Variables: Dependent variable: distribution of the chosen plant. Independent variable: amount of sunlight in the area. Constant variable: the amount of temperature, soil pH, nutrients, salinity and water content. Hypothesis: Some plants grow well under higher amount of sunlight while others grow well under less amount of sunlight. The plant which has been chosen is likely to grow well in an area which it is not exposed to high amount of sunlight. This is predicted after looking at the area where this type of plant is found and just observing the plant growth and distribution without ant practical work. Apparatus: * Light sensor * TI calculator * CBL Cable * Vanier LabPro (with batteries) * Quadrat The light...

The Importance of Physical Factors When Explaining...

In Eastern South America, bordering the Atlantic Ocean and every South American country except Chile and Ecuador is the largest country on the continent - Brazil (map 1). It is the fifth biggest country in the world with a total area of 8,511,965 sq km. The coastline of Brazil is 7,491 km. The terrain is mostly flat to rolling lowlands in the north and towards the east there are some plains, hills, mountains and a narrow coastal belt. The climate is mainly tropical but temperate in the south. Brazil is rich in natural resources. The Amazon basin, which traverses the country, is the area with the largest concentration of fresh water in the world. The country has bauxite, gold, iron, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower and timber. The principal crops are coffee, fruit trees, maize, beans and sugar. The total population in Brazil is 182,032,604 with an...

Popular Essays


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?